'Exporters to benefit from simple & fast procedures'

The trade facilitation measures or supplement to foreign trade policy announced on Thursday includes a plethora of procedural simplification norms and incentives for the exporting community. Director-general of foreign trade RS Gujral explains the nuances of the measures announced in an interaction with ET. Excerpts:

Could you give us details of the special package of Rs 325 crore for the leather and textiles sector?

The minister will decide the specifics at an appropriate time. It could include allowing exporters market linked focus products (incentive to export specific products to specific markets). The quantum of incentive and the markets for which it will be provided will be decided by the minister. The sectors, which will be included in the scheme, are the ones which have been more severely affected.

How the decision to delink grant of incentive scrips under various reimbursement schemes from realisation of export proceeds will benefit exporters?

Incentive scrips under schemes such as DEPB, focus product and focus market would now be provided immediately on exports without bankers realisation certificate which sometimes used to take 10 months to 18 months. Now, like duty drawback, these scrips would be provided as soon as exports take place. Exporters will now have to give only shipping bills and bankers certificate of export to get the scrips. We will also be stipulating guidelines to be notified separately to prevent misuse.

Are there other relaxations, too, in terms of using the duty-free scrips for imports?

Yes. Earlier, these scrips were allowed to be used for only freely importable items. Now, these can also be used for importing restricted items. The government will continue to monitor imports in order to see whether there is sudden surge and whether there would be any adverse impact on any sectors.

To what extent will the industry be benefited by the extension of export obligation period against advance authorisations by up to 36 months?

This is a major measure for exporters. Earlier, if any extension was allowed beyond 24 months, a composition fee was charged. The fee was 2% for the first six months and 5% for the next months But now, exporters will not have to pay any charges for 36 months.

Could you elaborate on the measure reimbursing additional duty of excise levied on fuel for 100% EOUs?

The government has been reimbursing the duty paid on fuel by 100% EOUs. The additional duty was not being reimbursed. It has now been decided that the additional duty, too, would be reimbursed.

Source: http://economictimes.indiatimes.com/